Important changes in filing ITRs for Assessment Year 2017-18

Source: The Hitavada      Date: 11 Apr 2017 09:46:55


By CA Julfesh Shah,

Central Board of Direct Taxes (CBDT) has brought in changes in the filing of the Income-Tax returns for the Assessment Year 2017-18. They are as follows.


1. The first and most important change is mentioning Aadhar number/enrolment number is compulsory for all Income-Tax returns (ITRs). In case of partnership firms, Aadhar number of all partners has to be mentioned. This will reduce the use of duplicate PAN and will help find the correct address of tax evaders, etc.


2. Details of cash deposited equal to or above Rs 2,00,000 in the period of demonetisation from 9/11/2016 to 30/12/2016 have to be mentioned in the Income-Tax return. When the details are already available from the banker to the I-T Department in this regard, why this information is asked again is not known. It may be for cross checking and finding tax evaders post demonetisation.


3. Unexplained credit or investment attracts tax @ rate of 60% plus surcharge irrespective of slab rates. New column is inserted in ITR forms to report such unexplained income.


4. If income from dividend exceeds Rs 10 lakh, then tax at the rate of 10% is applicable. New column is inserted in ITR forms for such dividend income in ‘Schedule OS.’ New column has been inserted to report dividend income upto Rs 10 lakh and Long-Term Capital gain exempt u/s 10(34),10(38) respectively.


5. Government has notified a simple one page form ITR-1 Sahaj for individuals earning income from salary, pension, one house property and income from other sources.
New ITR-1 Sahaj has retained those deductions which are most frequently used by the taxpayers under sec 80C which includes LIC premium, PPF contribution etc, 80D which means mediclaim premia, 80G means donation and sec 80TTA means interest on saving bank for which they have provided a separate column.


6. A new field has been provided in new ITR forms for deduction under 80EE which allows deduction on home loan interest for the first time home buyers.


7. Government has introduced a new schedule requiring individuals and HUF to declare the value of assets and liabilities if their total income exceeds Rs 50 lakh. Now, taxpayers are also required to disclose address of immovable property and description of movable properties under new ITR forms. Further, a new field has been introduced for the disclosure of ‘Interest held in the assets of a firm or AOP as a partner or member.’ Such members or partners are also required to disclose name, address, PAN of the firm or AOP.


8. The taxpayers under presumptive taxation need not maintain any books of accounts which means they have to pay tax on profit calculated on the turnover.
(a) In FY 2016-17 in case of an assessee whose income does not exceed Rs 2 crore, a new column has been inserted in ITR to show income at the rate of 8% of the turnover realised in cash and at the rate of 6% of turnover realised through digital receipts.
(b) In new ITR-4 form, a new column has been inserted which shows an option to avail presumptive taxation scheme for professionals whose total receipts do not exceed Rs 50 lakh under Section 44ADA. ITR-4 which is now applicable for taxpayer opting for presumptive taxation scheme has a new column under the Schedule TDS-2 to show the receipts as mentioned in form 26AS.


9. Now in case of trusts it is compulsory to mention the internal audits conducted under any other act in form Income-Tax return-7.
Similarly details will have to be provided about the utilisation of funds toward capital or charity purpose.